Only Treasury auction securities, new-issue CDs with a term to maturity of 5 years or less, and certain CD strategies are eligible for this service. Treasury inflation-protected securities (TIPs), inflation-protected CDs (CDIPs or IFCDs), callable CDs, floating and adjustable rate CDs, and CD purchases exceeding $250,000 are all ineligible, as are all other fixed income instruments and all secondary Treasury or CD securities.
Auto Roll benefits
This service tracks the maturity dates of Treasuries and CDs and automatically keeps you invested according to the terms of the Auto Roll Service Agreement, when initial investments mature. While it helps you stay invested in Treasuries or CDs based on your criteria, you still need to pay attention to the Auto Roll alerts so you can take appropriate action if necessary.
You have the ability to withdraw from the service at any time with no penalties, giving you complete control. This Auto Roll feature will continue to purchase a replacement position at the maturity of the existing position unless:
- You cancel the Auto Roll feature for that enrolled position
- You sell part of, or add to, that enrolled position
- You sell positions from that CD Ladder or elect to turn off the Auto Roll feature from that CD Ladder
- There is a material change to the Treasury auction schedule, such that there is no longer a corresponding Treasury auction available at the time your existing Treasury position matures
- Fidelity is unable to find a replacement new-issue CD that meets the size, duration, and coupon frequency criteria of the maturing position, pursuant to the applicable Auto Roll Service terms
- You delete your subscription to the Auto Roll service
How to enroll
After you accept the Auto Roll Service Agreement and subscribe to the Fidelity Alerts Service for eligible U.S. Treasury and CD positions, select Yes on the Auto Roll option displayed on the order entry screen to take advantage of this convenient feature. In the context of a Model CD Ladder, you will be asked if you wish to utilize the Auto Roll Service during the ladder construction process. If selected, the Auto Roll Service will apply to all CD positions in the ladder, reinvesting proceeds from all maturing CD positions in new issue CDs with maturities equal to the length of the ladder. The subscription to Fidelity Alerts is a mandatory requirement of the Auto Roll Service.